EUROPEAN INFLATION: Swiss Nov CPI In Line With Consensus; Below SNB Forecast

Swiss CPI inflation printed in line with consensus at 0.7% Y/Y in November (vs 0.7% cons; 0.6% prior), and -0.1% M/M (vs -0.1% cons and prior). Core CPI also printed in line with consensus, at 0.9% Y/Y (vs 0.9% cons; 0.8% prior) and 0.0% M/M.

• Regardless of the uptick vs October, this means that inflation continues to print considerably below the SNB's Q4 forecast of 1.0% Y/Y.
• There was some softening in categories the SNB appears to place the most weight on, namely domestic and services inflation:
  • Domestic 1.7% vs 1.8% prior
  • Imported -2.3% vs -3.1% prior
  • Services 1.8% vs 1.9% prior
  • Goods -0.9% vs -1.3% prior
  • Energy and fuels 0.2% vs -1.9% prior
  • Housing rent 3.4% vs 4.0% prior (the category saw its quarterly update)